Document 1847685

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KAMALA D . HARRIS
Attorney General of California
NICKLAS A . AKERS
Senior Assistant Attorney General
SHELDON H. JAFFE (State Bar 200555)
SUSAN SAYLOR (State Bar 154592)
Deputy Attorneys General
455 Golden Gate Avenue, Suite 11000
San Francisco, CA 941 02-7004
Telephone: (415) 703-5500
Fax: (415) 703-5480
AUG - 7 2015
By E. Higginbotham, Deputy Clerk
Attorneys for Plaintiff
THE PEOPLE OF THE STATE OF CALIFORNIA
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SUPERIOR COURT OF THE STATE OF CALIFORNIA 12
COUNTY OF SACRAMENTO 13
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THE PEOPLE OF THE STATE OF
CALIFORNIA, '
Plaintiff,
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Case No. 34-2010-00085933
[P-ROF@SED] FINAL JUDGMENT AND
PERMANENT INJUNCTION AS TO
DEFENDANT RONI LYNN DEUTCH
v.
RONI DEUTCH, A PROFESSIONAL TAX
CORPORATION, a California corporation;
RONI LYNN DEUTCH, an individual; and
DOES 1 through 100, inclusive,
Trial Date:
None set
Action Filed: August 24, 2010
Defendants.
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Judgment- Case No. 34-20 10-00085933
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Based on a review of the Complaint filed by Plaintiff, the Stipulation for Entry of Final
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Judgment and Permanent Injunction as to Defendant Roni Lynn Deutch, the [Proposed] Final
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Judgment and Permanent Injunction as to Defendant Roni Lynn Deutch (Final Judgment), the
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defendant's answer to the Complaint, and other papers and orders on file in this action, the Court
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finds that:
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1. Plaintiff, the PEOPLE OF THE STATE OF CALIFORNIA, by and through California
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Attorney General Kamala D. Harris (the People or Plaintiff), and Defendant RONI LYNN
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DEUTCH, (Defendant), have finally resolved the matters in controversy between them;
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2. Plaintiff and Defendant Deutch (collectively, the Parties) have stipulated to entry of this
Final Judgment;
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3. This Final Judgment, including the injunctive relief ordered herein, is entered without
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trial, without final adjudication of any issue of fact or law, without any admission by Defendant
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Roni Lynn Deutch as to any issue of fact or law and without any finding or admission of fault or
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concession of liability, fraud or other wrongdoing by Ms. Deutch, including any admission by
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Ms. Deutch that damages have been incurred or that any penalty arises therefrom; and
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4. Good cause exists to enter this Final Judgment.
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Therefore, the Court hereby ORDERS, ADJUDGES, AND DECREES: JURISDICTION 5. This Court has jurisdiction over the subject matter of this case and the parties. Venue as to
all matters between the parties related to this action lies in this Court.
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PERMANENT INJUNCTION
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6. The injunctive provisions set forth at paragraphs 7 through 8 are only applicable to the
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extent that Defendant Roni Lynn Deutch, or anyone acting pursuant to her direct authority and/or
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control, including her agents, employees, officers, representatives, successors, or partners
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(collectively DEUTCH) engages in performing or assisting in any tax or tax liability related
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services of any nature (including as an attorney, certified public accountant, or enrolled agent).
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Judgment- Case No. 34-2010-00085933
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7. IT IS ORDERED that, ·pursuant to Business and Professions Code section 17200 et seq.,
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Roni Lynn Deutch and anyone acting pursuant to her direct authority and/or control, including her
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agents, employees, officers, representatives, successors, or partners (collectively DEUTCH), are
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enjoined from committing or performing the following acts:
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8. Making or causing to be made any untrue or misleading statements in connection with
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soliciting for, advertising for, or performing any services for clients or taxpayers who seek
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assistance with their tax liability, including any representations that:
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a.
DEUTCH has "saved" specific clients money, when DEUTCH has not saved those
clients any money or that DEUTCH has "saved" specific clients a certain amount of money, when
DEUTCH has not saved those clients that amount ofmoney;
b.
DEUTCH guarantees, promises, or in any way assures taxpayers that DEUTCH
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will be able to resolve their tax liability or that the taxpayers qualify for a tax debt resolution with
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the IRS;
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c.
DEUTCH can or will eliminate interest and penalties that have accrued or that will
accrue on a taxpayer' s tax liability;
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DEUTCH can or will reduce the taxpayer' s liability to a specific dollar amount or
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that DEUTCH can or will secure a specific monthly payment amount for the taxpayer as part of
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an installment agreement;
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e.
DEUTCH has achieved a specific success rate in negotiating tax debt resolutions
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with the IRS or suggest or imply in any way that DEUTCH has a high success rate in negotiating
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tax debt resolutions with the IRS;
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f.
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liability;
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g.
DEUTCH can or will stop or prevent IRS actions to collect on a taxpayer's tax
DEUTCH charges a "flat fee" or in any way suggest or imply that the client's fee
cannot increase during the representation;
h.
DEUTCH will provide a refund of all unearned fees if either DEUTCH resigns
from the representation or the client terminates the representation; and
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Judgment- Case No. 34-2010-00085933
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DEUTCH spent a certain amount of time completing tasks on a client's behalf,
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unless DEUTCH actually spent that amount of time completing the tasks and DEUTCH has
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written time records that substantiate that amount of time.
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9. Advising taxpayers to stop communicating with the IRS or to ignore the IRS's attempts to ·
contact taxpayers.
10. Advising taxpayers to stop making their monthly installment payments to the IRS or in
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any way implying that taxpayers are not legally obligated to continue making their monthly
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installment payments to the IRS.
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11. Failing to record in their entirety all sales calls with potential clients, unless those
potential clients specifically refuse to give their consent to have the sales calls recorded.
12. Agreeing to represent any taxpayer or selecting an IRS tax debt resolution program for the
taxpayer until Defendants have reviewed the documents requested from prospective clients.
13. Charging or collecting any fees from a client before DEUTCH has reviewed the client's
documents and received a fee agreement signed by the client.
14. Billing a client for time spent on that client's matter or reducing the amount of a client's
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refund based on charges for time spent on that client's matter, unless DEUTCH actually spent the
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amount oftime billed on that client's matter and DEUTCH has written time records that
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substantiate the amount of time billed.
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15. Billing a client or reducing the amount of a client's refund using the same hourly rate for
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DEUTCH's attorney and non-attorney employees without previously disclosing to the client that
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it is doing so.
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16. Failing to refund all unearned fees to clients, even if a client has not requested a refund,
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within 60 days of either (1) the date the client terminated DEUTCH's representation or (2) the
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date DEUTCH resigned from the client's representation.
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17. Failing to place fees in a client trust account ifthere is a dispute over whether DEUTCH
has earned those fees.
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18. Providing or paying any of DEUTCH's employees bonuses, rewards, incentives, prizes, or
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any other type of cash, cash equivalent, or non-cash compensation other than the employee's base
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Judgment- Case No. 34-2010-00085933
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salary or hourly wage, that are based in whole or in part on the amount of money the firm refunds
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to its clients.
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19. The provisions of Paragraphs 6-18 above operate prospectively only, and are not intended
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to create any duty, obligation or liability regarding past representation of any client prior to the
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date of entry of this Judgment and Injunction.
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MONETARY PAYMENT
20. IT IS ORDERED that, pursuant to Business and Professions Code sections 17200 et seq.,
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defendant RONI LYNN DEUTCH shall pay to Office of the Attorney General $2,500,000.00;
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$50,000 of the total sum constitutes a civil penalty. The balance of this judgment, $2,450,000, is
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payable to the Office of the Attorney General of the State of California as a civil restitution award
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to, among other things, pay restitution to former customers of corporate defendant Roni Lynn
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Deutch, PTC.
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OPERATIVE COMPLAINT
21. The governing complaint in this action is the First Amended Complaint (FAC) filed
December 18,2013.
22. The FAC contains two causes of action: (a) Violation of Business and Profession Code
section 17500; and (b) Violation of Business and Profession Code section 17200.
23. The FAC does not contain a cause of action for: (a) fraud; (b) dishonesty; or (c) moral
turpitude.
OTHER PROVISIONS
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24. The Stipulation and this Final Judgment shall constitute a full and final resolution of all
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claims, counterclaims, and defenses, known or unknown, that the Parties have asserted against
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each other, based on, or arising out of, the allegations of the People' s Complaint in this case.
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However, nothing herein is intended nor shall be construed to prevent the Parties from taking
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action to enforce the terms of the Stipulation or this Final Judgment. The Stipulation and this
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Final Judgment are not intended to and do not resolve or waive any claims held by any individual
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or government entity, department, or agency not a party to the Stipulation.
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Judgment- Case No. 34-2010-00085933
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25. Except as provided under the terms of this Final Judgment, each party shall bear its own
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litigation costs and attorney fees, including any fee for the filing of the stipulation for entry of this
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Final Judgment.
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26. This Final Judgment shall take effect immediately upon entry hereof.
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GOVERNING LAW
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27. This Final Judgment shall be governed by and construed in accordance with the laws of
the State of California.
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RETENTION OF JURISDICTION
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11 12 13 28. Pursuant to Code of Civil Procedure section 664.6, the Court shall retain jurisdiction of
this action to decide any and all disputes, claims, or controversies between the parties regard the
validity, enforcement,,interpretation, or breach of this Final Judgment.
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So ordered this
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day of
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Judgment- Case No. 34-2010-00085933